Summary
Expedia Group, Inc. (EXPE) reported a significant recovery in its third quarter and year-to-date results for 2021, following the severe impact of COVID-19 in 2020. Revenue for the three months ended September 30, 2021, more than doubled to $2,962 million compared to $1,504 million in the prior year period, demonstrating a strong rebound in travel demand. This revenue growth was broad-based across its Retail, B2B, and trivago segments. The company also returned to profitability, reporting an operating income of $524 million and net income of $378 million for the quarter, a substantial improvement from the operating loss and net loss recorded in the same period of 2020. The nine-month period ending September 30, 2021, also showed substantial improvement, with revenue growing to $6,319 million from $4,279 million in 2020. While the nine-month period still reported a net loss of $380 million, this is a significant reduction from the $2,337 million loss in 2020, indicating a positive trend towards recovery. The company's cash flow from operations also saw a dramatic swing, from a use of $3,449 million in the first nine months of 2020 to a source of $3,463 million in the same period of 2021, highlighting improved working capital management and operational performance.
Financial Highlights
51 data points| Revenue | $2.96B |
| Operating Income | $524.00M |
| Interest Expense | $86.00M |
| Net Income | $376.00M |
| EPS (Basic) | $2.40 |
| EPS (Diluted) | $2.26 |
| Shares Outstanding (Basic) | 151.02M |
| Shares Outstanding (Diluted) | 160.46M |
Key Highlights
- 1Revenue surged by 97% to $2,962 million in Q3 2021 compared to $1,504 million in Q3 2020, indicating a strong recovery in travel demand.
- 2The company returned to profitability with an operating income of $524 million in Q3 2021, a significant improvement from an operating loss of $113 million in Q3 2020.
- 3Net income for Q3 2021 was $378 million, a substantial turnaround from a net loss of $200 million in the prior year period.
- 4For the first nine months of 2021, revenue increased by 48% to $6,319 million, and the net loss narrowed to $380 million from $2,337 million in the same period of 2020.
- 5Cash flow from operating activities saw a significant positive swing, moving from a usage of $3,449 million in the first nine months of 2020 to a generation of $3,463 million in the first nine months of 2021.
- 6The company completed the sale of its B2B corporate travel arm, Egencia, on November 1, 2021, which is expected to result in a significant gain in the fourth quarter.
- 7Debt refinancing activities occurred, including the issuance of $1 billion in 0% Convertible Senior Notes and $1 billion in 2.95% Senior Notes, and the redemption of higher-cost debt.